A Ponzi scheme is formally known as a “pyramid scheme” or “pyramid promotional scheme”, and it is a felony white collar crime here in Indiana. Continue reading to learn more about these crimes, including some common history facts, probable legal penalties, and what to do if you are charged with a similar fraud offense in Indiana.
Indiana Pyramid Schemes
A pyramid scheme is any type of operation that recruits participants who give over $100 for the opportunity to make more money by getting others to also become participants. In Indiana, the law defines pyramid scheme promotion or involvement as “persuading one or more individuals to join the scheme”, or “helping another person promote the scheme.”
Pyramid Scheme History
The meaning behind the colloquial term, “Ponzi” dates back in recent history to a man named Charles A. Ponzi, an Italian-born American swindler who was infamous for paying out returns using other investor’s money during the early 20th century. Although he was eventually caught and prosecuted, the immoral practice still occurs to this very day.
In fact, one of the most notorious pyramid scheme scams happened right here in Indiana back in 2012 when a financier named Tim Durham was convicted of conning nearly 200 million dollars from elderly investors. Another Hoosier by the name of John Marcum was charged by the Securities and Exchange Commission (SEC) for developing a $6 million Ponzi scheme in 2013.
Pyramid Scheme Laws and Penalties
According to Indiana Code 24-5-0.5: Deceptive Consumer Sales Act, “A person who founds, operates, or publicizes a pyramid scheme (a program where a participant gives over $100 for the opportunity to be compensated for getting others to join the program) commits a deceptive act under the Deceptive Consumer Sales Act.”
The state law allows a person to sue a Ponzi scammer in civil court if they suffered more than $500 in damages. The court, however, has full discretion to award 3 times the actual damages, or $1,000, as well as, lawyer fees, court costs, and even punitive damages for particularly egregious scams. Additionally, the law allows victims to join together and file a class action lawsuit against the pyramid scheme offender.
Pyramid Scheme Charges
If a person is charged with a pyramid scheme offense in Indiana, they face being convicted of one or more types of white collar crimes, including theft, money laundering, securities fraud, conspiracy, and more. It all depends on the details and scope of their offense. The common penalties that come along with such convictions include jail time, large fines, community service, probation, parole, house arrest, and restitution.
Indiana White Collar Crime Legal Defense
To best protect your rights and preserve your freedoms, you must have a seasoned and aggressive Indiana white collar criminal defense lawyer on your side, building you an impactful and strong case so that you can avoid the maximum penalties for your criminal charges. Call the Law Office of David E. Lewis at 317-636-7514 to schedule a free initial consultation and case evaluation with a licensed Indiana criminal defense lawyer you can trust.
